Acounting for giveaways
CMS
Registered Posts: 21 New contributor 🐸
I have a question for anyone who can answer it. If a company was purchasing items to use as a giveaway as part of a promotion am I correct in assuming that the cost to purchase them is simply written off to the P&L. It wouldnt go into stock or would it? Any imput would be appreciated.
Thanks
CMS
Thanks
CMS
0
Comments
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Advertising expense?0
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Its not so much advertising it is more a freebie, like a free badge if you buy something else. At first I thought it would be a simple write off in one go but now I am thinking that it should go on the balance sheet and then written off as they are used up?
CMS0 -
If they are to be given away as part of a promotion, I would write the cost off to the p/l under advertising and promotional.0
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Cool, that looks like the best option. Thanks for your help :-)
CMS0
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